LOS ANGELES, Aug. 22, 2002 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) today announced the completion of the sale of the entities holding its 29.5 percent equity interest in Equistar to Lyondell Chemical Company (NYSE:LYO) in exchange for 34 million shares of Lyondell common stock which represents approximately 21 percent of Lyondell's outstanding shares. As part of the transaction, Dr. Ray R. Irani, Occidental's Chairman and Chief Executive Officer, and Steven I. Chazen, Occidental's Chief Financial Officer and Executive Vice President - Corporate Development, joined Lyondell's Board of Directors.
This transaction both highlights the Company's primary focus on its oil and gas business and reduces the volatility of earnings from its chemicals segment, while preserving the economic upside of a recovery in the petrochemicals industry. Through its equity ownership in Lyondell, Occidental will benefit from Lyondell's strong position in intermediate chemicals and its approximately 59 percent ownership in a US oil refinery.
Occidental will record an after-tax gain of at least $100 million in its third quarter earnings and will account for its Lyondell holdings as an equity investment.
Note: This press release contains forward-looking statements regarding the nature and expected results of Occidental's transaction with Lyondell. Actual results are subject to future events and uncertainties -- including, among others, an economic downturn adversely affecting Lyondell's performance -- which could materially impact performance.